September 19, 2014

Nonprofit Sustainability Georgette E. Dumont, MPA, PhD

Presentation Goals

✤ Nonprofit leadership & strategic decisions

✤ Introduction to the Matrix Map

✤ Using the Matrix Map for long-term sustainability

Agenda

✤ Introduction

✤ The business model

✤ Role of nonprofit leaders

✤ Staying sustainable in this dynamic environment (Matrix Map)

✤ Q&A

Introduction

✤ Georgette E. Dumont, MPA, PhD (Gette)

✤ Assistant Professor, University of North Florida

✤ Specializations: Nonprofit Management, ICTs, Accountability, Strategic Planning and Leadership

✤ Past: Chamber of Commerce, School-to-Work, United Way, American Farmland Trust

First Steps

The Business Model

• Done at very beginning, and revisited often

• Need to answer• What will you offer (value)? • Who are your customers (constituents)?• How will you reach them?• What are the revenue streams (grants, donations,

fees, etc.)?• What is your delivery of services?• How will you measure success?

Leadership’s Role

✤ Use the organization’s business model for:

✤ Strategic planning/thinking

✤ SWOT analysis

✤ Make connections for sustainability

Sustainability

✤ An orientation, not a destination

✤ Dynamic Environment = Continual Change

✤ Focus:

✤ Money (financial sustainability)

✤ Mission (programmatic sustainability)

✤ Tool: The Matrix Map

The Matrix Map

Matrix Map✤ Visual tool for nonprofit’s business model

✤ Understand how all business lines (core activities) fit together

✤ Need to:

✤ Identify impact strategies (external effects of business lines)

✤ Identify revenue strategies (how particular business lines are financed)

• Assesses each activity’s:•Financial impact•Mission alignment• Implementation•Scale

The Map

Impact

Profitability

High impact,High profitability

High impact,Low profitability

Low impact,Low profitability

Low impact,High profitability

Source: Bell, et al., 2010

The Mapping Process

Collect data (qualitative and quanititative)

Program (Likert scale 1-5) Financial

Mission alignment Income

Scale or volumeGrants, other restricted

funds

Depth Unrestricted funds

Filling an important gap Full costs

Community building Direct

Execution/implementation Indirect

Use to…

✤ Understand programs

✤ Improve programs

✤ Move programs

✤ Cycle out programs

Matrix MapExample, Time A

$45,000

Matrix Map Example, Time B

$100,000

Matrix Map Comparison(Time A, darker)

Strategic Imperatives of the Map

Impact

Profitability

Invest and growKeep, but contain costs

Close or give away Nurture, increase impact

Source: Bell, et al., 2010

Matrix Map Comparison(Time B, darker)

Difficulties

✤ Time

✤ Honesty

✤ Agreement on mission impact

✤ Calculating ‘full cost’ of programs

✤ Egos, fear, resistance

✤ Cycling out business lines

Cautions

✤ Strategic Imperatives are not the final word, just suggestions

✤ Does not visualize diversification of revenue streams

✤ Matrix Map is a point in time

✤ Data may be bad

✤ Need strong leadership

Best uses

✤ Understand different business lines in a nonprofit

✤ See the interconnection between mission and money

✤ See how business lines change over time

✤ Initiate dialogue for difficult conversations

Recap

✤ Nonprofit’ need to understand their business model.

✤ Nonprofit leadership needs to continually assess environment and continually adjust to keep organization relevant and sustainable.

✤ Matrix map is a visual tool to help make strategic decisions.

“Greatness is not a function of circumstance. Greatness, it tuns out, is largely a matter of conscious choice, and

discipline”

–Jim Collins

01

Questions?

Resources

✤ Bell, J., Masaoka, J., and Zimmerman, S. (2010) Nonprofit Sustainability: Making Strategic Decisions for Financial Viability. San Fransisco: Jossey-Bass.

✤ Collins, J. (2005). Good to Great and the Social Sectors: A Monograph to Accompany Good to Great. Harper Collins.

Thank you

Georgette E. Dumont, MPA, PhD

email: g.dumont@unf.edu

Blog: www.getteinjax.com

Facebook: www.facebook.com/getteinjax

Twitter: GetteInJax